TSMC raised its investment budget in the US by a further $100 billion, driven by strong demand for AI technology through to 2030.

In an announcement tied to its quarterly results, the Taiwanese chipmaker revealed it would spend the sum in the US state of Arizona, adding to an investment of $165 billion which it has already committed.

TSMC has pledged to build eight manufacturing sites in Arizona, and with the additional investment, could now set up another four focused on manufacturing advanced 2nm chips, in addition to facilities for advanced packaging.

CEO CC Wei stated its raised outlook was based on demand mainly from cloud service providers, which provide a “strong signal and positive outlook”.

“Thus, our conviction in the multi-year AI mega-trend remains very high.”

He added the investment “will help further foster the development of the US semiconductor ecosystem, strengthen the supply chain and support an increasing number of high-tech, high-paying jobs” in the country.

In Q2 2026 the company reported a year-on-year revenue increase of 36% to TWD1.3 trillion ($40.4 billion), with net income increasing 77% to TWD706.6 billion.

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India committed to spend an additional INR1.9 trillion ($19.7 billion) on boosting chip and smartphone production in the country, accelerating an initiative first laid out five years ago.

Prime Minister Narendra Modi’s government has allocated around INR1.3 trillion to provide state aid for semiconductors and a INR625 billion outlay on smartphones.

The latest investment builds on the Semicon 1.0 initiative outlined in 2021 to invest around INR1 trillion on starting and establishing the country’s semiconductor sector.

In a statement, Ashwini Vaishnaw, minister for Electronics and Information Technology, explained under the refreshed Semicon 2.0, the nation would focus on ensuring chips are being designed in India that can meet all its needs, and by the end of the programme, “we will be 100% self-reliant”.

He added every major industry leader wants to establish a presence in the country “given the growing interest in India’s semiconductor programme”, pointing to partnerships already established with the US, Japan, the European Union (EU), Netherlands, Singapore and Germany.

The minister added the investment and incentives will be aimed at projects around chip design, fabrication of machinery, R&D and talent creation.

Under the Mobile Phone Manufacturing Scheme, Vaishnaw said it would create around 60,000 direct jobs, while it will look to incentivise domestic companies with Chinese suppliers currently dominating the market.

India’s semiconductor advancement adds to similar moves in the US, which has a funding programme in place worth $52 billion. The EU recently unveiled a revamp to its own Chips Act.

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The US government launched a cybersecurity coordination group allowing AI developers and service providers a formal way to work together to respond to threats emerging from the technology.

The White House stated it, along with the Department of the Treasury, Homeland Security, Department of War and the Cybersecurity and Infrastructure Security Agency worked closely with industry partners to detect threats faster and develop a rapid and prioritised response to cyber vulnerabilities across critical infrastructure sectors.

The group, called Gold Eagle, has been spearheaded by President Donald Trump as part of his vision to secure and accelerate American AI innovation.

It was first revealed as part of Trump’s executive order in June to promote advanced AI innovation and security, which includes plans for the release of a new operational model for cyber defence.

The model aims to tap into frontier AI capabilities to continue advancing faster than adversaries, reduce duplicative scanning efforts and “deliver prioritised and actionable threat and remediation information to defenders” across the government and private sector.

The White House statement explained Gold Eagle will help government and industry collectively identify risks, prioritise action and strengthen the resilience of systems that power the economy, national security and daily life.

Companies involved in the coordination group were not disclosed.

Trump’s administration has taken a hands-on approach to AI regulation.

In May it unveiled a legislative framework to create uniform security and safety guardrails. This followed another executive order at the end of 2025 to secure control of AI regulation away from individual states.

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The European Commission (EC) approved €659 million in German state aid to finance four new semiconductor facilities, in line with the bloc’s Chips 2.0 Act.

Europe’s executive arm stated the measures would contribute to strengthening the European Union’s (EU) position and autonomy in the semiconductor value chain by supporting “the construction of first-of-a-kind facilities”.

Germany will provide direct grants of €353 million, €214 million, €74.4 million and €17.9 million, respectively, to build the four semiconductor facilities.

The biggest sum will be invested in Baesweiler in North Rhine-Westphalia, on a site to manufacture silicon carbide epi-wafers. The EC explained this new type of semiconductor is expected to be used in various sectors including automotive, industrial, telecoms and energy, enabling improvements in the manufacturing process.

Positive effect
All beneficiaries of the investments have agreed to ensure the broader impact of the projects have positive effects on the EU semiconductor value chain, and strengthens collaboration with universities and research institutions. They also pledged to fulfil orders on a priority basis, develop specialised training programmes and share project-related profits with Germany.

The EC explained an assessment of the plan indicated the measures would promote development of economic activities by creating capacity in Europe, had limited impact on competition and trade in the EU, and had a positive effect on the region’s semiconductor sector.

It stated the awards are the 15^th to 18^th under its Chips Act 2.0 adopted last month and the original Chips Act.

Under the initiatives, it has provided cumulative aid of around €14.2 billion.

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Outgoing Ericsson CEO Borje Ekholm (pictured) warned higher component costs would impact profitability from its Networks business, as the vendor reported drops across its top line in Q2.

Ekholm highlighted Ericsson took action to mitigate component cost inflation and pledged the company would “continue to pursue internal measures and pricing action to help offset the effect” of likely continued increases in the coming quarters.

“We also expect some pressure on Networks adjusted gross margin in Q3 due to higher volumes of network rollout projects.”

Revenue declined 6% year-on-year to SEK52.7 billion ($5.4 billion) and net income 12% to SEK4 billion. The company attributed the decreases to lower IPR licensing revenue, reflecting a non-recurring benefit from a partial settlement in the comparable period of 2025.

Sales from Networks fell 8% to SEK33 billion due to negative currency impacts and declines in Europe and the Americas.

Its Enterprise division recorded a 19% sales drop.

The picture was brighter in Cloud Software and Services, with sales growing 3% to SEK14.7 billion.

Strength
The Q2 earnings report is the last to be overseen by Ekholm, who is due to leave at the end of September. His successor Per Narvinger will present Q3 figures.  

Ekholm signed-off by stating Ericsson enters the next phase of facing pressures “from a position of strength”.

“Over recent years, we have strengthened our portfolio to capture the next wave of AI-driven connectivity. Building on our technology leadership in mobile networks, we have expanded into attractive growth areas, positioning Ericsson to capitalise as AI increasingly moves into the physical world,” he said.

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